Strategic Expansion Of Toxfree s Technical And Environmental Services In NSW Through The Acquisition Of Worth Recycling. safe.reliable.

Strategic Expansion Of Toxfree s Technical And Environmental Services In NSW Through The Acquisition Of Worth Recycling safe.reliable.sustainable

Disclaimer This document has been prepared and issued by Tox Free Solutions Limited (ABN 27 058 596 124) ("Toxfree" or the "Company"). No party other than Toxfree has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or undertakings in this document. Summary information This presentation contains summary information of Toxfree current as at the date of this presentation. The information in this presentation does not purport to be complete or comprehensive, and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with Toxfree's other periodic continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au, and are also available on Toxfree's website at www.toxfree.com.au. Not a prospectus This presentation is not a prospectus or a product disclosure statement or any other offering document under the Corporations Act 2001 (Cth) and has not been (and will not be) lodged with the Australian Securities and Investment Commission. This presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. Not investment advice The presentation does not constitute investment or financial product advice, nor is it a recommendation to acquire securities in Toxfree. Further, the information provided in this presentation is not intended to be relied upon as advice to investors or potential investors in making a financial decision, and nor is it intended to constitute legal, tax, accounting or other advice. This presentation has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs. Recipients should make their own enquiries and investigations regarding any investment, and should seek their own professional advice on the legal, financial, accounting, taxation and other consequences of investing in the Company. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or on its accuracy or completeness. Financial data All dollar values are in Australian dollars (A$), and financial data is presented within the financial year end of 30 June, unless otherwise stated. Risks of investment An investment in Toxfree shares is subject to investment and other known and unknown risks, some of which are beyond the control of Toxfree. Toxfree does not guarantee any particular rate of return or the performance of Toxfree nor does it guarantee the repayment of capital from Toxfree or any particular tax treatment. You should have regard to (among other things) the risks outlined in this presentation when making an investment decision. 2

Disclaimer (cont d) Disclaimers None of Toxfree's advisers, nor any of their respective affiliates, related bodies corporate, directors, officers, partners, employees, contractors or agents ("Limited Parties ), have authorised, permitted or caused the issue, dispatch or provision of this presentation and there is no statement in this presentation which is based on any statement by them. None of the Limited Parties take any responsibility for any information in this presentation or any action taken by investors on the basis of such information, and none of them makes or purports to make any statement in this presentation. No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, the Limited Parties, Toxfree, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of Toxfree, including merits and risks. Investors should consult with their own professional advisers in connection with any acquisition of securities. The information in this presentation remains subject to change without notice. Forward looking statements This presentation contains certain forward looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions, and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Indications of, and guidance on, future earnings and financial position and performance are also forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Toxfree and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements. Actual results, performance or outcomes may differ materially from any projections and forward looking statements and the assumptions on which they are based. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place undue reliance on forward looking statements and neither Toxfree nor any of its directors, employees, servants, advisers or agents assume any obligation to update such information. There are a number of risks, both specific to Toxfree and of a general nature which may affect the future operating and financial performance of Toxfree and the value of an investment in Toxfree including and not limited to reliance on key customers, economic conditions, stock market fluctuations, environmental risks, regulatory risks and operating risks. These risks are explained in further detail in the key risks section of this presentation. 3

Disclaimer (cont d) Not for distribution or release in the United States or to US Persons This presentation has been prepared for release in Australia and may not be released or distributed in the United States. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Any securities described in this presentation have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. Other jurisdictions This presentation is not an offer to sell or a solicitation of an offer to subscribe or purchase of any securities, and may not be distributed, in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. 4

Contents 1 Transaction Overview 2 Overview of Worth Recycling 3 Strategic Rationale 4 Financial impact 5 Acquisition Funding 5

Transaction Overview 6

Key Highlights Major expansion in NSW through acquisition of Worth Recycling a leading liquid and industrial waste treatment and industrial services business Strategic EPA licensed waste treatment facilities in South Windsor and St Marys, plus operations in the Illawarra and the Hunter Valley Expands Toxfree s geographic presence and diversifies client base Synergies from integration of NSW operations with Toxfree and ability to expand Worth technologies and IP into other states Highly experienced management team and an excellent cultural fit 13% EPS accretive to Toxfree shareholders on forecast FY16 pro forma earnings 1 with strong margins and growth potential 1 Before synergies, transaction costs, rebranding expenses and amortisation of customer related intangibles and based on broker consensus estimates for Toxfree. 7

Transaction Overview Acquisition of Worth Toxfree has entered into a binding agreement to purchase 100% of the shares in Worth Corporation (100% owner of Worth Recycling) for A$70 million on a cash, debt and tax free basis and including normal working capital Strategic acquisition that provides Toxfree with a significant footprint in NSW, which is the largest, fastest growing waste and industrial services market in Australia The business is estimated to generate pro forma revenue in FY16 of A$62.5 million and pro forma EBITDA of A$12.9 million before synergies 1 Vendor to receive all cash consideration Completion expected to occur 31 March 2016 Worth Founded in 1976, the business has grown to become a significant player in the NSW industrial waste treatment, soil remediation and industrial services markets Worth operates a number of key EPA licensed facilities: South Windsor Oily Water Treatment Plant (OWTP) and associated facilities. Site operated under long term lease (10+5+5+5). (Toxfree will have preemptive acquisition rights) St Marys Soil remediation and chemical immobilisation facility with significant capacity to expand and add new waste streams Illawarra OWTP and Coal Tar Preparation Plant (CTP) at Bluescope (BSL) Pt Kembla facility, owned by BSL and operated by Worth Hunter Operates industrial services depot and waste transfer facility 1 On full year basis and excludes synergies, transaction costs and rebranding expenses. 8

Transaction Overview Compelling Strategic Rationale Acquisition Funding Major expansion in NSW Australia s largest and fastest growing state with significant position in metropolitan liquid waste market Significantly expands Toxfree s presence in NSW, providing opportunity to realise synergies through integration of the respective businesses Growth opportunities outside NSW through leveraging Worth s technologies and technical know how into Queensland, Victoria and Western Australia Geographic and industry sector diversification Financially compelling Purchase price and transaction costs funded by a combination of A$24.0 million institutional placement and SPP and A$50.4 million draw down of syndicated debt facility Expected Financial Impact Expect EPS accretion of 13% pre synergies in FY2016 on full year pro forma adjusted basis (based on broker consensus estimates for Toxfree) 1 Positive impact on EBITDA margins Maintains gearing near target levels 1 Before synergies, transaction costs, rebranding expenses and amortisation of customer related intangibles. 9

Overview of Worth Recycling 10

Business Overview Operates in NSW industrial waste treatment and industrial services markets Collects, transports, processes and recycles liquid, sludge and contaminated soil Provides confined space services, industrial cleaning and non destructive digging Operates EPA licensed liquid waste treatment facilities in South Windsor and Pt Kembla and soil remediation and immobilisation treatment facilities in St Marys Fleet of liquid and vacuum tankers including heavy vacs Average fleet age of 5.3 years Operations in metropolitan Sydney, the Illawarra and the Hunter Valley Established 1976 and grown through investment in treatment facilities and fleet over time Designed and built Oily Water Treatment Plants at South Windsor and BSL Pt Kembla Business Unit Revenue FY16 11% 25% 9% 17% 38% Windsor St Marys Illawarra Environmental Remediation Other Business Units 11

Business Overview Kurri Kurri greenfield site expected to replace existing operation South Windsor OWTP St Marys SWT Sans Souci (head office) Pt Kembla BSL OWTP and CTP = Worth facilities = Toxfree facilities 12

Integrated Service Offering Worth offers a broad range of liquid and hazardous waste collection and treatment as well as other associated industrial services Services include the collection and treatment of liquid and hazardous wastes from commercial and industrial customers and the provision of industrial services including non destructive digging and industrial cleaning Industrial and Hazardous Waste Treatment Waste collection and industrial services 13

Business Overview Top 20 contracted clients make up 54% of revenue Top 5 customers include Ventia, Caltex, Bluescope, IOR and Thales Summary Income Statement FY15 and FY16E FY15 FY16E Revenue 50.5 62.4 Operating expenses (39.4) (49.5) Adjusted EBITDA 11.1 12.9 Margin % 22.0% 20.7% FY15 Customer Concentration by Revenue FY15 Revenue By Customer 46% 54% D&A (3.2) (3.8) EBIT 7.9 9.1 Margin % 15.7% 14.6% Top 20 Customers Other Customers 14

South Windsor Licensed OWTP (est. 1985) Receives and processes oily sludge, slops oils, waste oily waters, and contaminated solids/sludge and wastewater emulsions Wastewater treatment capacity of 1 million litres per week Operates 5.5 days per week (approved to operate 7 days per week) Approximately 90% of water is recycled Truck parking facility Licenses and technologies provide competitive advantage through low cost treatment solutions and levy rebates 10+5+5+5 year lease, CPI index with pre emptive purchase rights 15

St Marys Licensed contaminated soil remediation and chemical immobilisation facility, established 2014 Only large scale off site fixation based remediation facility in NSW Toll processor producing disposable solid waste through chemical fixation of waste streams Operates 5 days per week, can operate 24/7 when needed >3,000m 3 undercover storage, odour control and >90% hardstand Planned additional DG3 storage site Potential to co locate Toxfree s other hazardous waste services including E waste management BluBox technology Freehold owned by Worth (Toxfree following completion) 16

Other Locations and Services Illawarra Operates OWTP and Coal Tar Preparation Plant at Pt Kembla Facilities owned by Bluescope and operated by Worth Hunter Valley Technical projects Currently operates from leased service depot in Kurri Kurri New greenfield site on freehold land with DA to develop integrated facility Tank cleaning / pipe cleaning / pressure blasting / decommissioning Defence Tank cleaning services on Garden Island Non Destructive Digging Operating in greater Sydney area & Hunter Valley Potential growth option through expansion into service location and high rail Provides waste streams for South Windsor and St Marys facilities Exposure to growing civil infrastructure sector in NSW 17

Fleet Type No. Vacuum 29 Heavy Vacuum 8 Tanker 13 NDD 9 Combination 4 Flat Bed 1 High Pressure 1 GRAND TOTAL 65 High quality, mobile fleet with low average age of 5.3 years To be rebranded to Toxfree over next 12 months 18

Experienced Leadership Team Steve Matthews leads a highly experienced, capable and committed management team Leadership team have agreed to transition with the business Steve Matthews CEO Operational Management General Managers Corporate / Head Office Key Management South Windsor St Marys CFO Business Development Illawarra Hunter Valley IT Assets Health and Safety Technical Officer HR 19

Strategic Rationale 20

Toxfree s Corporate Strategy Technical and Environmental Services Leader in Hazardous and Industrial Waste Management Innovation, best practice, low operating cost technologies, centres of excellence, resource recovery Unique and Strategic Licences throughout Australia High barriers to entry Servicing all industry sectors, households and government Waste Services Provide all waste services in all regional hubs of Australia Regional focus WA, QLD, TAS, SA and NT Total waste management solutions to blue chip clients Municipal, Commercial, Industrial One stop shop Market to producing assets is estimated at >$1Bn pa Industrial services Leader in provision of industrial services throughout Australia Producing assets Long term contracts Blue chip clients Ideally integrated with waste services Mining, Oil and Gas, Civil Infrastructure, Heavy Industry Based on our strategy Toxfree have estimated a target market of approximately A$4 to A$5Bn pa* *Source: insidewaste, Industry Report 2014 15, IBIS Waste Disposal Services in Australia 2012 and Toxfree estimates. 21

Strategic Rationale Toxfree s Corporate Strategy Rationale for Acquiring Worth 1 2 Technical and Environmental Services Leader in Hazardous and Industrial Waste Management nationally Provide a Broad Range of Industrial Services to Blue Chip Clients Under Long Term Contract Best technologies Best licenses Best people High barriers to entry Servicing all industry sectors Civil infrastructure Commercial Mining Oil and gas Infrastructure Heavy manufacturing Government Major expansion in NSW, with significant position in liquid waste and soil remediation NSW is the largest and fastest growing market in Australia Exclusive access to strategic EPA licensed liquid treatment and soil remediation facilities Diversifies Toxfree s industry and geographic exposure and customer base Greatly increases Toxfree penetration of NSW market Significant opportunity to realise synergies and growth Integration into Toxfree NSW operations Processing of Toxfree waste streams through Worth facilities Expansion of Worth s services into Queensland, Victoria and Western Australia Integration of shared services 22

Benefits To Toxfree Platform for Future Growth Expansion and Diversification of Earnings Base Attractive geographic presence in NSW providing opportunities to expand Toxfree s services Worth holds an attractive position in NSW through the technologies and licenses it operates which complement Toxfree s existing facilities significantly and provide a greater platform from which it can build its industrial waste management offering Worth s clients are in commercial and industrial sectors where Toxfree expects to leverage its expertise in Hazardous and Industrial Services to add value to Worth s current service offering Expansion and diversification of earnings base both in terms of geography and service Ability to leverage expertise and experience to expand Toxfree s earnings base and footprint in attractive markets Diversifies sector exposure increasing NSW to 16% of Toxfree revenue Financially Compelling Acquisition Profitable business with strong operating margins Lower capital intensity and higher return on invested capital consistent with Toxfree s TE&S Division Potential to extract cost synergies and value add to systems and processes Represents an EPS accretive transaction for shareholders 23

Strategic Rationale Rationalization of Hunter Valley operations Rationalization of St Marys operations Processing of Toxfree waste streams through South Windsor & St Marys = Worth facilities = Toxfree facilities 24

Revenue By Service And State The acquisition of Worth will significantly expand Toxfree s Technical and Environmental Services Division to 20% of group revenue and provides an opportunity to expand Industrial Services in NSW Revenue breakdown by Division FY16E Toxfree Revenue breakdown by Division PF FY16E Combined 13% Waste Sevices 20% Waste Sevices 24% 63% Industrial Services Technical & Environmental 26% 54% Industrial Services Technical & Environmental Revenue breakdown by State FY16E Toxfree Revenue breakdown by State PF FY16E Combined 48% 7% 4% 31% NSW QLD VIC WA SA & TAS 42% 6% 16% 27% NSW QLD VIC WA SA & TAS 10% 9% 25

Financial Impact 26

Expected Financial Impact Expected EPS accretion of 13% for pro forma FY2016 on full year basis Based on broker consensus for Toxfree Excludes any revenue or cost synergies Excludes amortisation of customer related intangibles Excludes transaction costs Positive impact on EBITDA margins Worth is expected to operate at an EBITDA margin of 20.7% in FY16 Funded on a conservative basis to return gearing to target levels in near term Acquired balance sheet includes A$9.2 million working capital, A$29.6 million market value of fleet, land and equipment and A$31.2 million intangibles Intangibles include an estimated A$1.9 million of amortisable customer related intangibles 27

Historical Pro Forma Balance Sheet Pro forma balance sheet reflects fair value of assets acquired including: Land A$8.0 million Plant A$8.6 million Fleet A$13.1 million A$ Million Tox Dec 15 Acquisition (1) Funding Pro Forma Balance Sheet Cash 22.6 22.6 Goodwill & Intangibles PP&E and Other Assets 151.0 31.2 182.2 242.9 43.0 285.9 Total Assets 416.5 74.2 490.7 Debt 92.9 50.4 143.3 Other Liabilities 64.9 4.3 69.2 Total Liabilities 157.8 4.3 50.4 212.5 Total Equity 258.7 (3.8) (2) 23.4 (3) 278.2 1) Financial position as at 31 December 2015 on a cash, debt and tax free basis in accordance with the share sale agreement. 2) Transaction costs, including stamp duty and rebranding costs that will be expensed. 3) Funding includes anticipated draw down of debt and equity raised in the placement and SPP, net of equity raising fees. 28

Acquisition Funding 29

Funding Arrangements Purchase price of A$70.0 million, payable 100% in cash Based on zero net debt and zero income tax liability and normal working capital Transaction costs of A$4.4 million (including stamp duty (A$1.2 million) and rebranding costs (A$1.5 million)) Toxfree to undertake fully underwritten A$20.0 million institutional placement Toxfree also plans to offer eligible shareholders an opportunity to participate in a Share Placement Plan (SPP) at the same price as the institutional placement capped at A$4.0 million Toxfree will fund the balance of the acquisition by drawing down debt under its existing syndicated loan facility with ANZ and WBC Sources A$ Million Uses A$ Million Debt 50.4 Acquisition Price 70.0 Equity Placement 24.0 Transaction Costs 4.4 Total Sources 74.4 Total Uses 74.4 30

Equity Raising Details Equity Raising Details Placement Size Placement Pricing Shares to be Issued Purpose Syndicate SPP A$20.0 million Fixed price of A$2.55 per share 4.4% discount to the 5 day VWAP, 3.3% discount to the 1 day VWAP and 1.9% discount to last close Up to 7.8 million shares ( New Shares ) under placement To partly fund the acquisition of Worth Corporation Morgan Stanley is acting as Sole Underwriter and Joint Lead Manager and Evans & Partners is acting as Joint Lead Manager on the institutional placement Eligible shareholders in Australia and New Zealand will have the opportunity to subscribe for Toxfree shares pursuant to a nonunderwritten Share Placement Plan (SPP) Pricing to be the same as the Institutional Placement Up to A$10,000 per eligible shareholder Capped at A$4.0 million and directors reserve the right to scale back 31

Funding Equity Key Event Date SPP Record Date Friday, 18 March 2016 Trading Halt, Announcement and Institutional Bookbuild Monday, 21 March 2016 Existing Shares Recommence Trading Tuesday, 22 March 2016 Placement Settlement Date Thursday, 24 March 2016 Allotment and Trading of Placement Shares SPP Wednesday, 30 March 2013 Details, including timetable, of the SPP will be sent to shareholders in the near future 32

Disclaimer This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except to the extent permitted below. Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the "SFO"). No action has been taken in Hong Kong to authorise or register this document or to permit the distribution of this document or any documents issued in connection with it. Accordingly, the New Shares have not been and will not be offered or sold in Hong Kong other than to "professional investors" (as defined in the SFO). No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to New Shares that are or are intended to be disposed of only to persons outside Hong Kong or only to professional investors (as defined in the SFO and any rules made under that ordinance). No person allotted New Shares may sell, or offer to sell, such securities in circumstances that amount to an offer to the public in Hong Kong within six months following the date of issue of such securities. The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any contents of this document, you should obtain independent professional advice. New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Shares are not being offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) other than to a person who: is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act; meets the investment activity criteria specified in clause 38 of Schedule 1 of the FMC Act; is large within the meaning of clause 39 of Schedule 1 of the FMC Act; is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or is an eligible investor within the meaning of clause 41 of Schedule 1 of the FMC Act. Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in connection with the offer or sale, or invitation for subscription or purchase, of New Shares, may not be issued, circulated or distributed, nor may the New Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore except pursuant to and in accordance with exemptions in Subdivision (4) Division 1, Part XIII of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), or as otherwise pursuant to, and in accordance with the conditions of any other applicable provisions of the SFA. This document has been given to you on the basis that you are (i) an existing holder of the Company s shares, (ii) an "institutional investor" (as defined in the SFA) or (iii) a "relevant person" (as defined in section 275(2) of the SFA). In the event that you are not an investor falling within any of the categories set out above, please return this document immediately. You may not forward or circulate this document to any other person in Singapore. Any offer is not made to you with a view to the New Shares being subsequently offered for sale to any other party. There are on sale restrictions in Singapore that may be applicable to investors who acquire New Shares. As such, investors are advised to acquaint themselves with the SFA provisions relating to resale restrictions in Singapore and comply accordingly. 33

Disclaimer (cont d) United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA")) has been published or is intended to be published in respect of the New Shares. This document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of the FSMA) in the United Kingdom, and the New Shares may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section 86(1) of the FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom. Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received in connection with the issue or sale of the New Shares has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of the FSMA does not apply to the Company. In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Any securities described in this document have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws. 34

Key risks Reliance on key customers Toxfree's businesses rely on a number of business relationships and contracted revenue with clients. If these clients amend or terminate the relationship, this may have an adverse effect on the financial performance and/or financial position of Toxfree. In addition, Toxfree may generate its revenue from the provision of services to customers under other agreements. There is potential that Toxfree will not receive payments for the provision of its services if a customer becomes insolvent or fails to provide payment in accordance with its agreement with Toxfree. Major shareholder risk Toxfree currently has a number of substantial shareholders on its share register. There is a risk that these shareholders or other large shareholders may sell their shares at a future date. This could cause the price of Toxfree shares to decline. Operating risks In the performance of its business, Toxfree may be subject to conditions beyond Toxfree's control that can reduce sales of its services and/or increase costs of both current and future operations. These conditions include, but are not limited to: changes in legislative requirements, abnormal or severe weather or climatic conditions, natural disasters, unexpected maintenance or technical problems, key equipment failures, new technology failures and industrial disruption. An inability to secure ongoing supply of such goods and services at prices assumed within production targets could potentially impact the results of Toxfree's operations. Economic conditions Adverse changes in economic conditions such as interest rates, exchange rates, inflation, government policy, national and international economic conditions and employment rates amongst others are outside Toxfree's control and have the potential to have an adverse impact on Toxfree and its operations. Outsourcing risk The level of activity undertaken by Toxfree depends to a large extent on the continuation of the current trend towards the outsourcing of non core functions by potential clients. If this trend does not continue or reverses, it may impact Toxfree's prospects for growth. Tax risks Any change to the current rate of company income tax in Australia will impact on financial performance and cash flows, ability to pay dividends and Toxfree's Share price which could in turn impact shareholder returns. Any changes to the current rates of income tax apply to individuals and trusts will similarly impact on shareholder returns. Capital and operating costs Toxfree's forecasts are based on the best available information at the time, and certain assumptions in relation to the level of capital expenditure required to maintain their assets. Any significant unforeseen increases in the capital and operating costs associated with Toxfree's operations would impact Toxfree's future cash flow and profitability. Capital and operating costs for Western Australian operations have increased in recent years due to increased labour and contractor costs. 35

Key risks (cont d) Environmental risks Extensive Federal, State and local environmental laws and regulations in Australia affect the activities and operations of Toxfree. The laws and regulations set standards which regulate certain aspects of health and environmental quality (including damage caused by previous owners of property acquired by Toxfree), provide penalties or other remedies for any violation of standards and, in certain circumstances, impose obligations to undertake remedial action in current locations where business is conducted. Toxfree will be subject to all the hazards and risks normally incidental to the waste, manufacturing and the industrial solutions industries. Toxfree will be responsible for past and future environmental liabilities relating to both Toxfree and Worth, including liabilities presently unforeseen or unquantifiable. Compliance or non compliance with environmental laws or regulations may require Toxfree to incur significant costs and may have a significant material impact on Toxfree's reputation and capability to secure additional work, impacting its financial performance and cash flows. Toxfree minimises these risks by having processes in place to manage compliance with environmental laws and regulations in Australia. Reliance on key personnel The responsibility of overseeing day to day operations the strategic management of Toxfree is currently, and after the acquisition, will be concentrated amongst a small number of key employees. While it is not currently anticipated, one or any number of these key employees may cease employment with Toxfree. The loss of any such key employees of Toxfree could have the potential to have a detrimental impact on Toxfree until the skills that are lost are adequately replaced. There is also a risk that key personnel of Worth are unable to be retained by Toxfree or successfully replaced. Occupational health and safety Toxfree manages certain risks associated with the occupational health and safety of its employees. Toxfree takes out insurance to cover these risks within certain parameters, however it is possible for injuries and/or incidents to occur which may result in expenses in excess of the amount insured or provided for with a resultant impact on Toxfree's earnings. Industrial disputes Industrial disputes may arise from claims for higher wages and/or better working conditions in the industry in which Toxfree operates. This could disrupt operations and impact earnings. Debt facilities Whilst it is not currently anticipated, should Toxfree not be able to satisfy the conditions of draw down under its debt facilities, Toxfree will need to source funding from alternative sources. Stock market fluctuations There are risks associated with any investment in a company listed on the ASX. The value of shares may rise above or below the current share price depending on the financial and operating performance of Toxfree and external factors over which Toxfree and the Directors have no control. These external factors include: economic conditions in Australia and overseas which may have a negative impact on equity capital markets; changing investor sentiment in the local and international stock markets; changes in domestic or international fiscal, monetary, regulatory and other government policies and developments and general conditions in the markets in which Toxfree proposes to operate and which may impact on the future value and pricing of shares. 36

Key risks (cont d) Liquidity and realisation risk There may be few or many potential buyers or sellers of Toxfree Shares on the ASX at any time. This may affect the volatility of the market price of Toxfree's Shares. It may also affect the prevailing market price at which shareholders are able to sell their Toxfree Shares that is less or more than the implied share price. Regulatory risks Toxfree is exposed to any changes in the regulatory conditions under which it operates in Australia. Such regulatory changes can include, for instance, changes in: taxation laws and policies, accounting laws, policies, standards and practises, environmental laws and regulations that may impact upon the operations and processes of Toxfree, and employment laws and regulations, including laws and regulations relating to occupational health and safety. Customer preference Toxfree's products and services are subject to changes in customers' preferences, and therefore market share and pricing competitiveness may vary depending on the popularity of Toxfree s products and services. Sustainability of growth and margins Toxfree has achieved strong growth in revenue and profits. The sustainability of this growth and the level of profit margins from operations are dependent on a number of factors outside of Toxfree's control. Industry margins in the sectors in which Toxfree operates are likely to be subject to continuing but varying margin pressures. There is no assurance that the historical performance of Toxfree is indicative of future operating results. However, Toxfree's business strategies and its diversification across a range of sectors assist in reducing the short term pressures that can occur as new entrants attempt to secure positions in an individual industry sector. Competition A number of entities compete with Toxfree in the industrial services and hazardous waste industries, and while Toxfree is the largest supplier of some specific services, in overall size, some of these competitors may have or develop competitive advantages over Toxfree and may be larger on an international or regional basis and have greater access to capital and other resources. The market share of Toxfree's competitors may increase or decrease as a result of various factors such as securing major new contracts, developing new technologies and adopting pricing strategies specifically designed to gain market share. These competitive actions may reduce the prices Toxfree is able to charge for its services and products or reduce Toxfree's activity levels, both of which would negatively impact the financial performance of Toxfree and could materially affect Toxfree's financial performance or cash flows. Acquisition completion risk In the event the acquisition does not proceed, the funds raised will be used for growth and general working capital purposes of Toxfree and/or capital management initiatives. 37

For More Information Steve Gostlow Managing Director Jason Dixon Executive General Manager Corporate and Risk Michael Constable Chief Financial Officer Email: s.gostlow@toxfree.com.au Tel: +61 8 6216 7000 Mob: +61 (0) 419 197 155 Email: j.dixon@toxfree.com.au Tel: +61 3 9541 4700 Mob: + 61 (0) 419 310 792 Email: m.constable@toxfree.com.au Tel: +61 3 9541 4700 Mob: + 61 (0) 419 504 003 38

Questions 39